Is this Australia’s cheapest house?

Fancy picking up a property for less than $30,000? How about a reno project in Victoria, a one-bedroom unit in magnetic island or a two-bedroom miner’s cottage complete with sapphire mining gear?

As the affordability debate rages on, Your Investment Property has sought out some of the cheapest properties on the market in Australia, and the results make for interesting reading.

For just $27,000 it’s possible to pick up this one-bedroom, one-bathroom former Masonic lodge building in Woomelang, Victoria, around 200km north-west of Bendigo. The catch? “This building is crying out for some love and attention,” says the real estate agent’s blurb.

For less than $29,000 the owner of a one-bedroom, one-bathroom unit in the popular Queensland holiday destination of Magneitc Island will consider selling up. According to the blurb, this is the perfect opportunity to park your spare cash: “get in now and don't come crying later when they go up in price,” says the sales pitch. However, with body corporate fees and council rates coming to approximately $10,068 per year, even cash buyers will face substantial holding costs.

A few mining communities have dirt cheap offerings on the market. For $30,000 you could pick up this one-bedroom, one-bathroom reno project in the old gold mining town of Ravenswood, QLD, or a two-bedroom, one-bathroom miner’s cottage complete with mining gear in Sapphire, QLD. Meanwhile, South Australia’s Opal capital, Coober Pedy, has a one-bedroom, one-bathroom semi-built house on offer for $32,000.

Head up the price scale to $47,000 and you could add a one-bedroom, one-bathroom Cairns holiday unit to your portfolio. Billed as an “urgent liquidation” sale, “the owner wants this unit gone yesterday,” says the sales pitch. However, with body corporate fees and rates coming to approximately $9,400 per year, the property would need to be rented out for 38 to 41 weeks per year at the suggested rental scale of $230 to $250 per week to cover those expected costs.

While these regional sub-$50,000 properties may not be prime investment stock, they do provide an insight into some of the more affordable properties on offer in Australia. But before you go off in search of that bargain basement property to add to your portfolio, it’s worth heeding the advice of Destiny Financial Solutions founder Margaret Lomas.

While she suggests that affordable properties with high growth potential exist in regional areas – and that population growth, increasing household incomes, new businesses and lowering vacancy rates are all good signs – “buying a cheap property isn’t a valid criteria by which you choose”.

“Not everything in the regions, everything in the suburbs and everything that’s affordable makes a good investment property,” she said.